Chubu Electric Power Co.,Inc. | September 2019 Regular Press Conference : President Katsuno's Message - Key Point of President's Regular Press Conference (2019)

Key Point of President's Regular Press Conference (2019) September 2019 Regular Press Conference : President Katsuno's Message

October 1, 2019

Chubu Electric Power Co.,Inc.

  • To begin, I would like to focus on Typhoon No.15 (Faxai).
  • I would like to express my greatest sympathy to everyone who suffered from the damage wrought by this typhoon.
  • With the goal of early restoration of any service interrupted by the typhoon, Chubu Electric Power began preparing ahead of the typhoon’s landfall to deploy power-generating vehicles as soon as any areas were affected. Since the official appeal for assistance went out, we and our group companies have deployed a total of 2,933 personnel and 42 power-generating vehicles.
  • The longest service interruptions following last year’s Typhoon No. 21 (Jebi) and No. 24 (Trami) were 6 days and 12 hours and 5 days and 20 hours, respectively. These power outages caused great inconvenience and hardship for many of our customers. Typhoon No. 15 resulted in prolonged power interruptions still unresolved after more than three weeks. Such conditions once again impress upon us the magnitude of the impact that these events have on society.
  • In the weeks and months ahead, reviews will be conducted on what transpired from a variety of perspectives, and we will make use of the new knowledge and other insight gained in this process, putting it to use as we strive to further enhance our resilience.
  • I will be discussing the following matters today:
  • Electric power supply and demand results for this summer in the Chubu area
  • Reorganization necessary for the post-split business structure

Electric power supply and demand results for this summer in the Chubu area

  • First, I would like to talk about the electric power supply and demand during this past summer.
  • From July of this year through yesterday, the maximum three-day power average was 25,390 MW, which was recorded in August, and the maximum power at a single point was 25,680 MW, which was recorded on September 10.
  • The maximum power at a single point recorded in September is the highest figure since the Great East Japan Earthquake.
  • On the supply side, we interchanged 500 MW of power from other companies due to a tight demand-supply situation. Ordinarily, there would have been a decrease in capacity supplied by photovoltaic generation during the evening hours together with a decrease in demand. However, on September 10, the temperature was high at 3 p.m. when we made the power interchange decision as we estimated that demand would not decline that evening either.
  • In addition, a similar trend was observed the following day on September 11, so we invoked Power Source I’ to secure balancing power so that we could adjust the level of supply to meet demand. I would like to express my appreciation to our customers, with whom we previously entered into electric power and demand adjustment contracts, for their cooperation.
  • In the future, we will analyze changes in the energy supply and demand structure, including the large volume adoption of renewables, demand trends during heat waves and severe winters, and other factors.
  • In addition, the Chubu Electric Power Group continue to work together even after the split as we strive to “fulfill our unwavering mission” which is to provide a stable supply of electric power.

Reorganization necessary for the post-split business structure

  • Next, I would like to discuss our reorganization that will allow us to adapt to the post-split business structure.
  • In April 2019, Chubu Electric Power integrated our thermal power generation business into JERA. In April 2020, our power transmission and distribution business as well as the sales division will be spun off as we transition to a “model that separates power generation from sales” in which each division deals with a different market and operates its business independently.
  • With the goal of translating this new business model into action, Chubu Electric Power will implement a reorganization on April 1, 2020 that will allow Chubu Electric Power, Chubu Electric Power Grid and Chubu Electric Power Miraiz to cooperate and maximize the Chubu Electric Power Group’s value even after the split while, at the same time, achieving overall optimization.
  • With this new organizational structure, Chubu Electric Power will aim to increase earnings in the energy sector, grow into a stronger corporate group, and endeavor to coordinate our respective business areas so as to provide a stable supply of electric power.

TECHNO FAIR 2019

  • Lastly, I would like to make an announcement about TECHNO FAIR 2019, which the Research & Development Division will hold on October 31 and November 1.
  • TECHNO FAIR is held annually to showcase our research and development efforts. Every year, approximately 3,000 customers and other attendees visit this event, and this year marks the 27th time that we have held this event.
  • This year’s theme is the “New Age of Energy: Challenges for the Future.” The latest technological developments will be presented in activities relating to:
  • Nuclear safety technology
  • Stable supply in the new era
  • Provision of community support infrastructure and innovative technologies
  • Core technologies supporting the energy business
  • This ends my presentation.